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31. The withdrawal of inventory by the owner for personal use should appear in the trading account as a deduction from
(A) sales
(B) purchases
(C) overdrafts
(D) none of these

32. A company had opening inventory of $200,000. Sales and purchases during the period were of $400,000 and $80,000 respectively. What is the gross profit for the period if the closing inventory was worth $100,000?
(A) $20,000
(B) $120,000
(C) $220,000
(D) $320,000

33. Which from the following costs are included in conversion costs?
(A) Carriage in
(B) Carriage outwards
(C) Commission of selling staff
(D) Supervisor’s wages

34. Goods which originally cost $800 were sold for $1,000. In the accounting equation Net Assets will?
(A) Rise by $1,000
(B) Rise by $200
(C) Fall by $1,000
(D) Fall by $200

35. A debit entry usually represents
(A) Assets and Expenses
(B) Assets and Income
(C) Liabilities and Income
(D) Liabilities and Expenses

ANSWERS: FINANCIAL ACCOUNTING MCQS
31. (B) purchases
32. (C) $220,000
33. (D) Supervisor’s wages
34. (B) Rise by $200
35. (A) Assets and Expenses

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